Anyone able to help with a k code query?

Poppie68

jem16 wrote: »

Impossible to tell without more info. What does the P2 Coding Notice say with regards deductions to get the 389L tax code?



BR means all the income is taxed at 20% so no tax-free allowance on this which is to be expected. His tax free allowance is within the 389L tax code - you only get one tax-free allowance.

Personal allowance....£11000
Total....£11000
Less medical insurance...520
Less adjustments to rate bands....6586
Total tax free amount...3894



That BR is causing a problem again, they have again confirmed his PAYE has been taxed at 20%+40%..

The K1812 was allocated apparently because they estimated he would be earning £18,120 more this coming tax year...They have no idea at the moment where that assumption came from.

jem16

Poppie68 wrote: »

Personal allowance....£11000
Total....£11000
Less medical insurance...520
Less adjustments to rate bands....6586
Total tax free amount...3894

Looks ok to me. They have put I an adjustment to take care of the higher rate tax that is due.

That BR is causing a problem again,

Why is it a problem?

One income source will use the main tax code - in this case 389L. The second income source will use BR. As long as his pension is higher than £3890pa there is no problem.

they have again confirmed his PAYE has been taxed at 20%+40%..

Well I still can't see how they can deduct 40% tax using a BR tax code I'm afraid.

The K1812 was allocated apparently because they estimated he would be earning £18,120 more this coming tax year...They have no idea at the moment where that assumption came from.

Ok fair enough and that has now been amended.

Poppie68

jem16 wrote: »

Looks ok to me. They have put I an adjustment to take care of the higher rate tax that is due.




Why is it a problem?

One income source will use the main tax code - in this case 389L. The second income source will use BR. As long as his pension is higher than £3890pa there is no problem.




Well I still can't see how they can deduct 40% tax using a BR tax code I'm afraid.



Ok fair enough and that has now been amended.

Thanks jem, the guy my husband talked to today from HMRC is thankfully being very helpful.. He also doesn't understand how he is paying 40% on BR, he only got allocated the case 3 days ago but so far has discovered my husband was incorrectly informed by their office to use his BR on his PAYE, and even after my husband asking them to change it last week they adjusted his allowance but again set his codes the wrong way round...Expecting another P2 so hopefully 3rd time lucky.

He has also been told that it looks like he has overpaid over the last 3 years but can't confirm that until they have corrected all the errors...

Anyway thanks again for your help, it's much appreciated.